Emotional Aspects Planning Selling Your Practice

The Emotional Aspects of Selling Your Practice

By Philip Kempler, DMD, Broker
Thomas & Fees Practice Sales

“Why do you want to sell your practice?”

That’s the first question I ask when I meet with a prospective client. It’s important because many times the client is not selling for the right reason. Selling the practice is a permanent solution while the reason may be temporary. Maybe the dentist is just burned out or is experiencing personal issues or stress that can be resolved. And if the problems could be resolved, selling the practice would be a total mistake. A good Broker will help a prospective client explore alternatives, like bringing in an associate or cutting back the hours worked, before taking a listing on the practice.

On the other hand, there are reasons why it might be the right time to sell the practice. Perhaps you have a physical or mental impairment that is preventing the delivery of dental care. Or perhaps you have the financial ability to retire and want freedom to explore other interests.

Dental Lending Federal Capital Gains tax Interest rates Practice Sales Update

Update on Practice Sales

By Philip Kempler, DMD, Broker

The Importance of Interest Rates

Since I sold my dental practice in 1992 and became a Dental Practice Broker, the value of dental practices have had several ups and downs. The market hit bottom in 1997, when we saw many practices being sold for as low as 50% of one year’s gross collections. Fortunately, 1998 saw a slight upturn which continued through 1999. This was primarily due to low interest rates and the emergence of several dental finance companies which made money available to dentists for practice acquisition. The low rates allowed the selling dentist to command a higher price for his practice since the Buyer’s loan payments would be lower. There are several Dental Lenders now in the marketplace who are all competitive such as Bank of America, Wells Fargo, Lendeavor and Home Street Bank.  Call and we can give you the scoop.